JPMorgan's stock rises 1.58%, options sentiment mixed.

JPMorgan shares are up 1.58% near $287.64, with options volume roughly in line with average and calls leading puts for a put/call ratio of 0.46. Implied volatility dropped 0.2 near 23.73, and put-call skew flattened, suggesting a modestly bullish tone. Option markets price in a 50% probability of a move greater than 3.37% or $9.70.

JPMorgan Chase (NYSE: JPM) saw its stock downgraded by HSBC to "Reduce" on Tuesday, despite the investment bank raising its price target to $259.00 from $237.00. The stock is currently trading at $291.97, representing a 45.5% return over the past year and nearing its 52-week high of $296.40 [1].

HSBC cited valuation concerns, noting that JPMorgan's current market value of $811.41 billion makes significant upside challenging without a fundamental shift in valuation. Despite strong fundamentals, including 12.73% revenue growth in the last twelve months, the stock appears to be trading above its Fair Value, according to InvestingPro analysis [1].

The research firm calculated that even with an estimated $117 billion in share buybacks from 2025 through 2027, JPMorgan would need to maintain low-double-digit annual returns to reach a market capitalization of approximately $1 trillion. This would require the bank to accelerate its earnings per share growth to sustained low-double-digit levels [1].

HSBC acknowledged that substantial share buybacks would likely support EPS growth in 2026 and 2027, but expects these buybacks to moderate afterward as the bank reaches more optimal capital levels. The stock currently trades at a P/E ratio of 14.25x [1].

Analysts from TD Cowen have responded by raising their price target for JPMorgan to $336, citing the bank's strong capital position. Conversely, Baird has downgraded JPMorgan to underperform due to valuation concerns, maintaining a price target of $235. Citi has also adjusted its price target for JPMorgan, increasing it to $275, while maintaining a Neutral rating [1].

Furthermore, JPMorgan has announced significant developments that may interest investors. The company revealed a robust capital return plan, including a 66% increase in its stock repurchase program, allowing for up to $50 billion in common stock buybacks. Additionally, JPMorgan announced a 7% increase in its common dividend, enhancing its capital return to shareholders [1].

The stock's recent performance, including a 1.58% increase near $287.64, suggests a modestly bullish tone, with options volume roughly in line with average and calls leading puts for a put/call ratio of 0.46. Implied volatility dropped 0.2 near 23.73, and put-call skew flattened, indicating a moderate bullish sentiment [2].

References:
[1] https://www.investing.com/news/analyst-ratings/hsbc-downgrades-jpmorgan-stock-rating-to-reduce-despite-price-target-hike-93CH-4125887
[2] Current Date Time: July 02, 2025